@Klineact wrote:I had a Comenity Overstock which just closed for everyone. I was shocked when I logged into Experian this morning and lost 4 points when I have an extremely thick file around 30 accounts reporting. I have not one bad item on my reports and the limt on the card was $3500. My util hasnt changed I have a $2K balance reporting on one card out of all my available credit which is over $150K. There have been no other changes on my report other than I paid off a $26 balance that was on my Discover card and that zero'ed out today. So no change in util (still at 1%) and I have had several CLI's lately on various cards which more than made up for the lost card credit line. WHY would I have a score drop? Anyone know? Is it bc it says closed at Credit grantor's request? I am pretty upset bc they also are doing away with my Floor and Decor Card which I have a $5500 limit on I am going to lose I believe any day now...I guess I will lose several points for that as well. I am very confused by this.
The fact that it says closed at grantor's request would not affect your score.
If your aggregate revolving utilization was 1% before the account was closed, and it's 1% now, the loss of one $3500 credit limit would not have affected your score either.
@SouthJamaica wrote:
@Klineact wrote:I had a Comenity Overstock which just closed for everyone. I was shocked when I logged into Experian this morning and lost 4 points when I have an extremely thick file around 30 accounts reporting. I have not one bad item on my reports and the limt on the card was $3500. My util hasnt changed I have a $2K balance reporting on one card out of all my available credit which is over $150K. There have been no other changes on my report other than I paid off a $26 balance that was on my Discover card and that zero'ed out today. So no change in util (still at 1%) and I have had several CLI's lately on various cards which more than made up for the lost card credit line. WHY would I have a score drop? Anyone know? Is it bc it says closed at Credit grantor's request? I am pretty upset bc they also are doing away with my Floor and Decor Card which I have a $5500 limit on I am going to lose I believe any day now...I guess I will lose several points for that as well. I am very confused by this.
The fact that it says closed at grantor's request would not affect your score.
If your aggregate revolving utilization was 1% before the account was closed, and it's 1% now, the loss of one $3500 credit limit would not have affected your score either.
Yes it was 1% before. I check my experian report daily bc I use their monitoring service. When I click on "whats changed" this is what it says.
Comparing reports from Jul 27 and Jul 28
COULD HURT
Your total credit limit decreased by $3,600
Your credit limit decreased from $152,940 to $149,340, which typically means either a lender decreased your credit limit or you closed a credit card account.
A lower credit limit can make it harder to maintain low usage, which can harm your credit.
COULD HELP OR HURT
Your number of open revolving accounts decreased by 1
On your previous report you had 26 open revolving accounts, including credit cards and some lines of credit. Now you have 25, which usually means you closed an account.
COULD HELP OR HURT
Your total number of open tradelines decreased by 1
On your previous report you had 29 open tradelines or credit accounts. Now you have 28—not including any derogatory authorized user accounts—which usually means you closed an account.
COULD HELP
Your total balance on all accounts decreased
Your balance decreased $26 since your previous report, not including derogatory or collection accounts. You may or may not see a score change, since this balance is associated with other factors that affect your score.
COULD HELP
The balance of 1 account decreased
ACCOUNT
DECREASED
DISCOVER BANK
$26
So You guys said it should not matter but I am proof that closing an account with no change to your util does in fact matter. As of yesterday I had a $2000 balance reporting on my one card and the $26 which updated to zero today. Nothing new has happened..No new inquiries, no new accounts, nothing.. I will report back next week after they close my Floor and Decor and I bet I lose additional points. If that is how it goes now then so be it but people should be aware before they close what they feel are unnecessary accounts bc it does effect your score.
@Klineact wrote:
@SouthJamaica wrote:
@Klineact wrote:I had a Comenity Overstock which just closed for everyone. I was shocked when I logged into Experian this morning and lost 4 points when I have an extremely thick file around 30 accounts reporting. I have not one bad item on my reports and the limt on the card was $3500. My util hasnt changed I have a $2K balance reporting on one card out of all my available credit which is over $150K. There have been no other changes on my report other than I paid off a $26 balance that was on my Discover card and that zero'ed out today. So no change in util (still at 1%) and I have had several CLI's lately on various cards which more than made up for the lost card credit line. WHY would I have a score drop? Anyone know? Is it bc it says closed at Credit grantor's request? I am pretty upset bc they also are doing away with my Floor and Decor Card which I have a $5500 limit on I am going to lose I believe any day now...I guess I will lose several points for that as well. I am very confused by this.
The fact that it says closed at grantor's request would not affect your score.
If your aggregate revolving utilization was 1% before the account was closed, and it's 1% now, the loss of one $3500 credit limit would not have affected your score either.
Yes it was 1% before. I check my experian report daily bc I use their monitoring service. When I click on "whats changed" this is what it says.
Comparing reports from Jul 27 and Jul 28
COULD HURTYour total credit limit decreased by $3,600Your credit limit decreased from $152,940 to $149,340, which typically means either a lender decreased your credit limit or you closed a credit card account.
A lower credit limit can make it harder to maintain low usage, which can harm your credit.
COULD HELP OR HURTYour number of open revolving accounts decreased by 1On your previous report you had 26 open revolving accounts, including credit cards and some lines of credit. Now you have 25, which usually means you closed an account.
COULD HELP OR HURTYour total number of open tradelines decreased by 1On your previous report you had 29 open tradelines or credit accounts. Now you have 28—not including any derogatory authorized user accounts—which usually means you closed an account.
COULD HELPYour total balance on all accounts decreasedYour balance decreased $26 since your previous report, not including derogatory or collection accounts. You may or may not see a score change, since this balance is associated with other factors that affect your score.
COULD HELPThe balance of 1 account decreasedACCOUNTDECREASEDDISCOVER BANK$26
So You guys said it should not matter but I am proof that closing an account with no change to your util does in fact matter. As of yesterday I had a $2000 balance reporting on my one card and the $26 which updated to zero today. Nothing new has happened..No new inquiries, no new accounts, nothing.. I will report back next week after they close my Floor and Decor and I bet I lose additional points. If that is how it goes now then so be it but people should be aware before they close what they feel are unnecessary accounts bc it does effect your score.
IIMHO the comments on experian.com under "what's changed" are what I would call "fluff" in the user interface, and are not reliable. If you want to consider them "proof that closing an account with no change to your util does in fact matter", you are entitled to draw that conclusion if you wish. But I do not agree.
Please dont lose any sleep over 4 pts. In case you havent seen my fav pic to post. No explanation at all.
That kind of thing happens quite frequently on ScoreWatch.
EDIT: added pic with more detail
Starting Score: 469Current Score: 819
Goal Score: 850
Highest Scores: EQ 850 EX 849 TU 850
Take the myFICO Fitness Challenge
@CH-7-Mission-Accomplished wrote:. . . 4 points is simply noise. It's not significant and it's not worth fretting about.
EQ8 781, TU8 767, EX8 772 as of June 20
@CH-7-Mission-Accomplished wrote:^ This.
It was not that card closure. Without micro analyzing your report, it is impossible to guess, but something else happened in the background. Once you have a sufficient number of cards (5 to 7) and your utilization is down to 1% and you are practicing AZEO, you won't lose points from closing one card. That said, 4 points is simply noise. It's not significant and it's not worth fretting about.
I agree, unless OP is taken out of a higher tier into a lower tier and now doesn't qualify for the best rate for a mortgage or something. But yeah, four points is mostly nothing to worry about.
Starting Score: 469Current Score: 819
Goal Score: 850
Highest Scores: EQ 850 EX 849 TU 850
Take the myFICO Fitness Challenge